At OTC, May 8th, I stopped by the ApexBrasil exhibit to speak with Flavia Egypto, Head of Trade Promotion Division. In October, Brazil is holding an auction for drilling leases in the offshore, deep water, “Pre-Salt” fields. The reserves are called “Pre-Salt” because the oil existed before the salt covered it up.

Flavia stated that the oil is high quality with some sulfur content. It is very deep and under high pressure. Nevertheless, the production potential of the oil fields is very high and this is the value driving the efforts to reach oil that can be considered challenging to extract. “We are here trying to explain to the companies, that would have capacity to participate in the bidding process, how we do business in Brazil and the advantages of being in our market”, she said.

This project will require very high technology, the best. The reason is that the oil is 7000+ meters deep, of which 2000 meters is salt. The salt is highly collapsible and getting the oil to the surface is going to be a challenge. Thus, only the top players in drilling and subsea technology will make this ambitious project a reality.

Getting the oil is just the beginning of this gigantic project. Another aspect is supply chain side – that includes truck, ship, rail, software, communications, and the rest. So, there is lots of room for investment and profitable return.

Open dialogue with interested bidders aims to provide transparency around the auction parameters and highlight Brazil’s fast-growing oil and gas sector.

HOUSTON, May 6, 2019 /PRNewswire/ — The Brazilian Trade and Investment Promotion Agency (Apex-Brasil) is organizing a seminar in partnership with the Brazilian Ministry of Mines and Energy, the Brazilian National Agency of Petroleum, Natural Gas, and Biofuels (ANP), and the Brazilian Investment Partnerships Program (PPI) at this year’s 50thAnnual Offshore Technology Conference (OTC), which is taking place from May 6 to May 9, 2019 in Houston. The seminar will bring together representatives from the Brazilian Ministry of Mines and Energy and ANP to explain the parameters of Brazil’s upcoming oil auction and encourage participation in the bidding process.

“This is an exciting time for Brazil, as the country’s oil and gas sector has been going through an incredible resurgence,” said Marco Poli, Chief Investment Officer of Apex-Brasil. “The upcoming oil auction positions Brazil as one of the leading countries in the global oil and gas market. Through this educational seminar, we are looking forward to having an open discussion with major players in the industry – to answer questions and offer details and context around our country’s involvement in and commitment to this important sector – an industry that represents 13% of Brazil’s GDP.”

The upcoming oil auction, which is scheduled for October 28, 2019, will determine the rights to extract the excess oil in the transfer-of-rights (TOR) area, an approximately 1,080-square-mile zone off the Brazilian shoreline. The four separate fields that make up the TOR area – Atapu, Búzios, Itapu, and Sépia – contain billions of barrels of oil underneath a thick layer of salt. While Brazil’s state oil company Petróleo Brasileiro S.A. (Petrobras) currently owns extraction rights in all four fields, the auction winners will be able to explore these areas, potentially in partnership with Petrobras.

“The economic role of the Brazilian oil and gas sector has significantly increased over the last several years,” said Poli. “Today, Brazil is home to the 15th largest proven oil reserves in the world with a total of 15 billion barrels of oil, most of which are buried in deep waters. As global demand for oil continues to grow, the Brazilian government is working to increase oil production, modernize the law, and attract foreign investment in the sector.”

In addition to holding the auction seminar at OTC, Apex-Brasil’s investment team will be onsite to identify and facilitate appropriate partnerships with companies, products, and services that might positively contribute to the Brazilian oil and gas ecosystem. The leading 50 Brazilian oil and gas companies will also be at the conference. Representatives from these companies will be showcasing their innovative products and services at the Brazilian Pavilion on the OTC trade show floor. To learn more about the Brazilian delegation, visit the online catalog: http://catalogo.apexbrasil.com.br/otc-houston-2019.

About Apex-BrasilThe Brazilian Trade and Investment Promotions Agency (Apex-Brasil) acts to promote Brazilian products and services abroad and attract foreign investment to strategic sectors of the Brazilian economy. Apex-Brasil carries out diversified commercial promotion actions and works with public and private actors to develop the competitiveness of Brazilian companies and the country at large.